WuXi AppTec Co., Ltd. Class A · SSE:603259
WuXi AppTec Co., Ltd. Class A — 2024 J.P. Morgan Healthcare Conference
25 slides from WuXi AppTec Co., Ltd. Class A's conference presentation, Jan 10, 2024
Slide 1: WuXi AppTec
WuXi AppTec 2 0 2 4 J . P. M o r g a n H e a l t h c a r e C o n f e r e n c e January 10, 2024 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements; Non-IFRS Financial Measures
Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe
Slide 3: Company Overview, Business Highlights, Financial Performance, Growth Outlook
01 Company Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook 3 Note: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB. All net profit disclosed in this presentation represents ne
Slide 4: 1. Company Overview
1. Company Overview ze S| od
Slide 5: Our Vision and Challenges Facing Today's Healthcare Industry
Our Vision “Every drug can be made and every disease can be treated” through building the open-access platform with the most comprehensive capabilities and technologies in the global healthcare industry Challenges Facing Today’s Healthcare Industry Lengthy High Low Availability & R&D Process R&D Cos
Slide 6: Our Solution: Industry Leading Integrated CRDMO & CTDMO Platforms
Our Solution: Industry Leading Integrated CRDMO & CTDMO Platforms Five Integrated Platforms Drive Excellence in Execution, with Upstream Business Continuing to Generate Opportunities for Downstream Business Discovery Pre-clinical Clinical Commercialization WuXi Chemistry (CRDMO) Small molecule (incl
Slide 7: Continue Strong Growth as A Leading Global CRDMO & CTDMO Company
Continue Strong Growth as A Leading Global CRDMO & CTDMO Company Expect to Achieve Record High of Revenue, Profitability and Free Cash Flow in 2023 6,000+ >3,000 ~41,000 Active Customers1 Molecules in Small Total Employees1 Molecule CDMO Pipeline1 ￥ RMB >40Bn RMB >10Bn RMB >4.5Bn Revenue2 in 2023E,
Slide 8: Remain Focused on Delivering Value to Customers with Non-stop Growth Over the Past 20 Years
Remain Focused on Delivering Value to Customers with Non-stop Growth Over the Past 20 Years Top 2% - Outperform 1600+ A-share Listed Companies with the Same Long History +25-26% excluding COVID-19 commercial projects Revenue (RMB in billions)1 40.1-40.5 39.4 22.9 16.5 12.9 9.6 7.8 4.9 6.1 3.0 3.3 4.
Slide 9: Unparalleled Leader among All China-based Outsourcing Service Providers
Unparalleled Leader among All China-based Outsourcing Service Providers with Expanding Market Share China-based Total Outsourcing China-based Total Outsourcing Market Share in 2021 Market Share in 2022 39% 46% Others Others 23% 28% WuXi AppTec WuXi AppTec 1% 1% 8% 2% 2% 1% 2% 7% 2% 5% 2% 2% 3%3% 5%
Slide 10: Global Capacity Expansions in Progress to Support Strong Future Growth
Global Capacity Expansions in Progress to Support Strong Future Growth >250K m2 of Labs, Manufacturing Facilities & Offices Worldwide to Come Online in 2023 Changshu Wuxi Nantong Munich Tianjin Changzhou Philadelphia Oxford Minnesota Suzhou Couvet Taixing New Jersey San Francisco Delaware San Diego
Slide 11: Diversified Revenue Streams from Customers Across Regions
Diversified Revenue Streams1 from Customers Across Regions Ensure the Stability and Resilience of the Company’s Financial Performance China Europe 5.2Bn, +5% 3.3Bn, +10% US Revenue contribution: 18% Revenue contribution: 11% 19.4Bn, excluding COVID-19 commercial projects +36% Revenue contribution: 6
Slide 12: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Execute Long-Tail Strategy Increase Customer Strong, Loyal & & Increase Support to Conversion to Sustain Expanding Customer Base Large Pharma Growth Revenue1 breakdown Revenue1 breakdown Revenue1 breakdown Existing clients Top 20 global pharma
Slide 13: ESG Leading Position Further Enhanced in Global ESG Rating Systems
ESG Leading Position Further Enhanced in the Global ESG Rating Systems Committed to the Science Based Targets initiative (SBTi) in Dec. 2023 SBTi Committed in Dec. 2023 Consecutive “AA” ratings Improved to “Silver” rating in 2021, 2022 and 2023 in 2023 Consecutively named to S&P Awarded as Industry
Slide 14: 2. Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 15: WuXi Chemistry: Growing Small Molecule CRDMO Pipeline Delivers Sustainable Growth
WuXi Chemistry: Driven by “Follow the Molecule + Win the Molecule” Strategies, Growing Small Molecule CRDMO Pipeline Delivers Sustainable Growth “R” Q1-Q3 2023 Newly 428,269 Compounds 1 Added Molecules in Total 926 904 2,579 Preclinical & Phase I 32% 20 16% D&M Molecules 316 Phase II of Global Clini
Slide 16: TIDES (Oligo and Peptide): Fast Growing Pipeline and Strengthening Capabilities
TIDES (Oligo and Peptide): Fast Growing Pipeline and Strengthening Capabilities Bring in the Next Wave of Accelerated Growth Oligo and Peptide “D&M” Molecules Solid Phase Peptide Synthesizer Total Reactor Volume >5x 32,000 # of molecules Liter +48% 230 189 155 99 6,000 39 4,000 2,000 500 2020 2021 2
Slide 17: WuXi Testing: End-to-end Testing Platform for All Modalities
WuXi Testing: End-to-end Testing Platform for All Modalities; Maintain Leadership Position in Pre-clinical and SMO to Drive Steady Growth ~20% 900+ Pre-Clinical Testing China-based pre-clinical CRO IND projects enabled (DMPK, bioanalysis, Toxicology) Pre-clinical testing market share in 20221 2019-2
Slide 18: WuXi Biology: A Global Drug Discovery Biology Enabler
WuXi Biology: A Global Drug Discovery Biology Enabler with Comprehensive Capabilities & Early Building in Emerging Technologies; Continue to Generate Downstream Opportunities 2013 2014 2015 2017 2019 2020 2021 2022 2023 CRISPR BsAb ADC/ Cancer Fusion Oligo/ASO TIL Target Protein CAR-T/Cell AAV/Gene
Slide 19: WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform; Near Term Growth Catalysts with 4 Commercial Products to be Launched in 2023/2024 Testing Cell Therapies Gene Therapies CAR-T | TIL | MSC Cells AAV | LVV | TESSA 4 Commercial Products to be Launched: Plasmid & LVV • China's first
Slide 20: WuXi DDSU: Long-term Sustainable Royalty Incomes to Come
WuXi DDSU: Long-term Sustainable Royalty Incomes to Come 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q3 2023 Cumulative IND Submissions - 3 18 28 55 85 118 144 172 187 63.9 57.9 48.5 40.2 28.8 # of commercialized drugs 20.6 17.1 Pioneering 13.4 Year 0→1 10.1 5.8 3.01 2023 2024E 2025E 2026E 2027E 20
Slide 21: 3. Financial Performance
3. Financial Performance 21
Slide 22: Financial Performance
Financial Performance Revenue Adjusted Non-IFRS Gross Profit Adjusted Non-IFRS GPM RMB MM RMB MM +4.0% +23.4% 39.8% 40.0% 40.3% 38.0% 38.7% 38.7% 42.3% excluding COVID-19 39,355 commercial projects +13.8% 29,541 15,228 28,395 12,511 22,902 10,991 16,535 10,638 10,670 Q3 8,704 4,656 Q3 12,872 6,670 4
Slide 23: Continued Growth of FCF Driven by Business Growth & Operating Efficiency
Continued Growth of FCF Driven by Business Growth & Operating Efficiency Q1-Q3 2023 Operating Cash Flow Grew Strongly by 32.5% YoY; Continued to Invest in New Capacities & New Capabilities Capital expenditure 9,966 10,230 9,848 Operating cash flow RMB MM 6,936 Q1-Q3 Q1-Q3 2022 2022 4,379 7,431 3,828
Slide 24: 4. Growth Outlook
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Slide 25: We are Well Positioned to Continue to Grow
We are Well Positioned to Continue to Grow As global demand for life saving and innovative drugs continues to grow, demand for our unique 1 integrated CRDMO & CTDMO services keeps growing. We are confident to achieve 2-3% revenue growth in 2023, i.e. 25-26% growth excluding COVID-19 commercial proje